Gemini Plans To Outperform Binance In Compliance
Last updated on December 4th, 2022 at 10:43 pm
Binance, the largest crypto exchange, has been facing strict regulatory scrutiny around the world. Among this heightened regulatory pressure included Ontario where they were forced to close up shop.
One of the exchanges that want to gain a competitive edge over Binance is Gemini. The co-founder of Gemini exchange, Cameron Winklevoss, stated that Gemini was working hard to achieve regulatory compliance by “playing the long game.”
Winklevoss was giving his sentiments during an interview with Bloomberg. According to him, Gemini was striving to achieve regulatory compliance in the long run.
“We’re trying to be the fastest tortoise in the race. The long game pays off over time.”
Winklevoss also added that Gemini was working hand in hand with other crypto firms to cleanse the industry and ensure compliance with global financial regulators. Some of the crypto firms that Gemini is working with include bitFlyer, Bitstamp and Bittrex.
Gemini exchange is one of the institutions that helped create the Virtual Commodity Association in 2018, an organization whose objective is to eliminate bad behavior in the industry and avoid fraud and manipulation cases.
Gemini is not the only crypto exchange seeking to take the place of Binance and become the most significant exchange through compliance measures. Other exchanges such as Coinbase and Kraken have also joined the race.
Coinbase had an initial public offering at the beginning of this year, and to achieve this, the exchange published audited financial reports. On the other hand, Kraken is also planning to go public through an IPO after receiving a regulated bank charter in Wyoming back in September 2020.
Binance Regulatory Scrutiny
Binance is facing heightened regulatory scrutiny from all over the world. The U.K.’s Financial Conduct Authority (FCA) banned Binance from offering its services in its jurisdiction, stating that the exchange was not authorized to do so. Following this ban, banks in the U.K. also halted payments to Binance and blocked their clients from interacting with the crypto exchange.
In addition, Binance also faced a warning from Japan, with the Financial Services Agency (FSA) stating that the crypto exchange was not regulated in the country. The Thailand financial regulator is also filing criminal charges against Binance for offering financial services for which it was not licensed.
An additional report from Binance also stated that different financial institutions in the U.S. were also investigating Binance. The U.S. Department of Justice, the Internal Revenue Service and the Commodity Futures Trading Commission (CFTC) are all working together to investigate Binance and understand the fundamental aspects of Binance’s operations.
Despite the ongoing scrutiny, Binance remains to be the largest crypto exchange in terms of trading volumes.
According to CoinMarketCap, the trading volumes in Binance are over 100 times the trading volumes at Gemini. For other exchanges to fill this gap will take time and much effort to reach the numbers that Binance has achieved. To this end, the long-term game that Gemini has proposed may just be effective.
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